Sylvia Mathews Burwell aims to get misspent funds back

The Obama administration’s new pick to run Obamacare said she would use “the full extent of the law” to recover any federal funds that have been misspent on the state Obamacare exchanges that have failed.

“Where the federal government and the taxpayer has had funds misused, we need to use the full extent of the law to get those funds back for the taxpayer,” Sylvia Mathews Burwell said Wednesday in her confirmation hearing before the Senate Finance Committee.

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Burwell has broad support among Democrats and the backing of some prominent Republicans, such as Sens. Tom Coburn of Oklahoma and John McCain of Arizona, both of whom testified on her behalf. Her confirmation seems all but locked up, although Republicans still used the hearing to express their continued opposition to the health care law.

Republicans quizzed Burwell on how many of the people who enrolled under the law had coverage before they signed up (she said she didn’t know); if she would commit to replying to future committee questions (she said she would); and whether it’s fair that some union plans are exempt from certain Obamacare payments (she said the move was a part of the administration’s effort to ease the law’s transition process).

But overall, the hearing lacked the intense furor that Republicans have aimed at the law for the past four years. Finance Committee Chairman Ron Wyden said he attributed that, in part, to the “constructive” answers Burwell provided.

One of the most immediate challenges Burwell would face as secretary of the Department of Health and Human Services is Obamacare’s second year of enrollment and the most troubled state exchanges. It’s unclear which state plans can be repaired before the next sign-up season begins in November.

At least four states that ran their own systems this year are either strongly considering giving up on their sites or have already decided to do so and move to the federal HealthCare.gov. Those states — Massachusetts, Oregon, Maryland and Nevada — have spent at least $474 million in federal funds on their exchanges.

Many millions more have been spent in other states where exchanges also are struggling.

“We have to understand what went wrong,” Burwell said of the broken state exchanges. “When we do understand … we need to go to the full extent to the law if there are contractors or others that have misled through their contracts or other things to fully recover.”

Burwell told the committee that she wants to learn from the states with failed exchanges as well as those with successful systems. She added the caveat that she is not yet confirmed and so not yet familiar with the details of the contracts that govern the state deals.

Burwell committed to utilizing the law fully to recover funds in response to a question from ranking member Orrin Hatch of Utah. He and Republican Sen. John Barrasso of Wyoming introduced a bill Wednesday to require states that tried but failed to implement a state exchange to refund the money to the federal government.

Hatch indicated that he is impressed with Burwell’s qualifications for the HHS job but is concerned she won’t be responsive to Congress’ questions — a chief complaint Republicans had of her predecessor, Kathleen Sebelius.

“Overseeing the complex infrastructure of a department like HHS is not a job for the faint of heart. I wish you the best of luck … you will need it,” Hatch said.

Burwell faced a few tough questions from Democrats. Sen. Robert Menendez asked whether the administration would help states, specifically his state of New Jersey, clear a backlog of Medicaid applications.

Wyden said he hopes the committee will vote next week on Burwell’s confirmation. It’s then expected to go the Senate floor.

The HHS nominee also testified before the Senate Health, Education, Labor, and Pensions Committee last week.